Queensland Productivity Commission begins work, as hospitals get ‘rescue plan’

Five weeks after passing a bill to reinstate its Productivity Commission, the Queensland government has handed down its first order to the much-anticipated governmental body on Thursday.

Treasurer David Janetzki revealed on Thursday the commission was ready to begin its first task – a review into the Queensland building and construction industry – and delivered the terms of reference for the report.

“This important work by the Productivity Commission will drive up productivity and drive down cost pressures,” he said.

The state government has promised a review into the construction industry as the first step in its plan to reinvigorate Queensland’s construction industry amid a spate of big builds.Credit: Tony Moore

Janetzki also announced Angela Moody – a senior executive with experience in financial and regulatory policy in gas, water, and electricity industries – had been appointed as Productivity Commissioner.

The commission was first established in 2015. In 2021, the then-Labor state government dissolved the commission, integrating it back into the Treasury “to establish the new Office of Productivity and Red Tape Reduction”.

The new LNP government promised to reinstate the productivity commission, which it expected would combat blow outs in costs and delivery dates for major state infrastructure builds.

In another governmental review, seen by cabinet on Tuesday, cost blow outs were attributed to poor planning, rather than construction industry turmoil.

The review found a series of health sector upgrades covering 11 existing and three new hospitals, plus the new Queensland Cancer Centre slated for Herston, had been planned over a six-week period in 2022.

It added the major builds were managed in a “futile” manner that prioritised timelines above everything else.

With $230 million in upgrades and new builds already under way, Health Minister Tim Nicholls said on Thursday that the government had already put together a “hospital rescue plan” for the project as a whole.

“We’re going to take the time to replan and rescope these projects so that we can give people confidence in the pathway and the credible delivery of these projects,” Nicholls said.

Speaking from Townsville Hospital, Premier David Crisafulli said revised masterplanning was expected “within the calendar year”.

An artist’s impression of the new Queensland Cancer Centre, one of the health sector upgrades set for a planning overhaul after Tuesday’s review.Credit: Queensland Government

He said projects that were partially under way, such as the Townsville Hospital, could be delivered within a four-year timeframe, but other projects were yet to be determined.

Queensland Health Minister Tim Nicholls said funding for health sector upgrades would be factored into the 2025-26 budget, with $230 million in construction already under way.Credit: Matt Dennien

“I’m not going to tell you a porky here,” Crisafulli said.

Nicholls said the government’s “ambition” was to deliver the projects quickly, but remained clear the state would avoid the pitfalls outlined in previous report.

“I’m going to go back to the cabinet budget review committee and discuss the funding arrangements for it, and we’ll be making provision in the [20]25-26 budget for the funding for all these projects,” he said.

Crisafulli added any funds loosened up by tighter planning would give the government “the extra capacity to spend that extra money in that local health system”.

He said the “missing part” in the overall plans was now healthcare staff, particularly in rural and remote health service areas.

“They are the glue that’s holding the health system together at the moment, and they will continue to be,” he said.